BILL NUMBER: SB 1090	CHAPTERED  09/16/99

	CHAPTER   424
	FILED WITH SECRETARY OF STATE   SEPTEMBER 16, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 16, 1999
	PASSED THE ASSEMBLY   AUGUST 26, 1999
	PASSED THE SENATE   MAY 27, 1999
	AMENDED IN SENATE   MAY 20, 1999
	AMENDED IN SENATE   MAY 17, 1999

INTRODUCED BY   Senator Schiff

                        FEBRUARY 26, 1999

   An act to amend Sections 2340, 2341, and 2342 of, and to add
Section 15604 to, the Probate Code, relating to trusts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1090, Schiff.  Trusts:  charitable corporations:  private
professional trustees.
   (1) Existing law provides that a nonprofit charitable corporation
may be appointed as a guardian or conservator of a person or estate.

   This bill would specify that a nonprofit charitable corporation
may also be appointed as a trustee of a trust.
   (2) Existing law prohibits the court from appointing a private
professional conservator or private professional guardian unless
specified information is filed with the county clerk under penalty of
perjury.
   This bill would prohibit the court from appointing a private
professional trustee, as defined, unless specified information is
filed with the county clerk under penalty of perjury.  By extending
the class of persons required to file statements under penalty of
perjury, this bill would impose a state-mandated local program.
  (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 15604 is added to the Probate Code, to read:
   15604.  (a) Notwithstanding any other provision of law, a
nonprofit charitable corporation may be appointed as trustee of a
trust created pursuant to this division, if all of the following
conditions are met:
   (1) The corporation is incorporated in this state.
   (2) The articles of incorporation specifically authorize the
corporation to accept appointments as trustee.
   (3) For the three years prior to the filing of a petition under
this section, the nonprofit charitable corporation has been exempt
from payment of income taxes pursuant to Section 501(c)(3) of the
Internal Revenue Code and has served as a private professional
conservator in the state.
   (4) The settlor or an existing trustee consents to the appointment
of the nonprofit corporation as trustee or successor trustee, either
in the petition or in a writing signed either before or after the
petition is filed.
   (5) The court determines the trust to be in the best interest of
the settlor.
   (6) The court determines that the appointment of the nonprofit
corporation as trustee is in the best interest of the settlor and the
trust estate.
   (b) A petition for appointment of a nonprofit corporation as
trustee under this section may be filed by any of the following:
   (1) The settlor or the spouse of the settlor.
   (2) The nonprofit charitable corporation.
   (3) An existing trustee.
   (c) The petition shall include in the caption the name of a
responsible corporate officer who shall act for the corporation for
purposes of this section.  If, for any reason, the officer so named
ceases to act as the responsible corporate officer for purposes of
this section, the corporation shall file with the court a notice
containing (1) the name of the successor responsible corporate
officer and (2) the date the successor becomes the responsible
corporate officer.
   (d) The petition shall request that a trustee be appointed for the
estate, shall specify the name, address, and telephone number of the
proposed trustee and the name, address, and telephone number of the
settlor or proposed settlor, and state the reasons why the
appointment of the trustee is necessary.
   (e) The petition shall set forth, so far as the information is
known to the petitioner, the names and addresses of all persons
entitled to notice of a conservatorship petition, as specified in
subdivision (b) of Section 1821.
   (f) Notice of the hearing on the petition shall be given in the
same manner as provided in Sections 1822 and 1824.
   (g) The trustee appointed by the court pursuant to this section
shall do all of the following:
   (1) File the required bond for the benefit of the trust estate in
the same manner provided for conservators of the estate as set forth
in Section 2320.  This bond may not be waived, but the court may, in
its discretion, permit the filing of a bond in an amount less than
would otherwise be required under Section 2320.
   (2) Comply with the requirements for registration and filing of
annual statements pursuant to Article 4 (commencing with Section
2340) of Chapter 4 of Part 4 of Division 4.
   (3) File with the court inventories and appraisals of the trust
estate and present its accounts of the trust estate in the manner
provided for conservators of the estate set forth in Chapter 7
(commencing with Section 2600) of Part 4 of Division 4.
   (4) Be reimbursed for expenses and compensated as trustee in the
manner provided for conservators of the estate as described in
Chapter 8 (commencing with Section 2640) of Part 4 of Division 4.
However, compensation as trustee appointed under this section shall
be allowed only for services actually rendered and shall not be based
on the value of the estate.
   (5) Be represented by counsel in all proceedings before the court.
  Any fee allowed for an attorney for the nonprofit charitable
corporation shall be for services actually rendered and shall not be
based on the value of the estate.
   (h) The trustee appointed by the court under this section may be
removed by the court, or may resign in accordance with Chapter 9
(commencing with Section 2650) of Part 4 of Division 4.  If the
nonprofit charitable corporation resigns or is removed by the court,
the settlor may appoint another person as successor trustee, or
another nonprofit charitable corporation as trustee under this
section.
   (i) The trustee appointed by the court under this section is bound
by the trust instrument created by the settlor, and shall be subject
to the duties and responsibilities of a trustee as provided in this
code.
  SEC. 2.  Section 2340 of the Probate Code is amended to read:
   2340.  (a) No superior court may appoint a private professional
conservator or private professional guardian, or permit any person to
continue to serve as a private professional conservator or private
professional guardian, pursuant to Chapter 5 (commencing with Section
2350) or Chapter 6 (commencing with Section 2400) unless the
conservator or guardian has filed the information required by
Sections 2342 and 2343 with the county clerk in each county where a
petition for appointment has been filed.
   (b) No superior court may appoint a private professional trustee
unless the trustee has filed the information required by Sections
2342 and 2343 with the county clerk in each county where a petition
for appointment has been filed.
  SEC. 3.  Section 2341 of the Probate Code is amended to read:
   2341.  (a) As used in this article, "private professional
conservator" means a person or entity appointed as conservator of the
person or estate, or both, of two or more conservatees at the same
time who are not related to the conservator by blood or marriage,
except a bank or other entity authorized to conduct the business of a
trust company, or any public officer or public agency including the
public guardian, public conservator, or other agency of the State of
California.  In the case of an entity, all natural persons who are
authorized by the entity to perform the functions of a conservator
shall comply with this article.  The court may, at its discretion,
require any person who is the conservator for only one conservatee
not related to the conservator by blood or marriage to comply with
this article, and in that case, references in this article to a
"private professional conservator" includes those persons.
   (b) As used in this article, "private professional guardian" means
a person or entity appointed as guardian of the person or estate, or
both, of two or more wards at the same time who are not related to
the guardian by blood or marriage, except a bank or other entity
authorized to conduct the business of a trust company, or any public
officer or public agency including the public guardian, public
conservator, or other agency of the State of California.  In the case
of an entity, all natural persons who are authorized by the entity
to perform the functions of a guardian shall comply with this
article.  The court may, at its discretion, require any person who is
the guardian for only one ward not related to the guardian by blood
or marriage to comply with this article, and in that case, references
in this article to a "private professional guardian" includes those
persons.
   (c) As used in this article, "private professional trustee" means
a nonprofit charitable corporation appointed as trustee pursuant to
Section 15604.
  SEC. 4.  Section 2342 of the Probate Code is amended to read:
   2342.  (a) All private professional conservators, private
professional guardians, and private professional trustees shall file
annually with the county clerk a statement, under penalty of perjury,
containing the following information:
   (1) His or her educational background and professional experience.

   (2) At least three professional references.
   (3) The names of the conservator's or guardian's current
conservatees or the trusts currently administered by the trustee.
   (4) The aggregate dollar value of all assets currently under the
conservator's, guardian's, or trustee's supervision.
   (5) The conservator's, guardian's, or trustee's addresses and
telephone numbers for his or her place of business and place of
residence.
   (6) Whether the conservator, guardian, or trustee has ever been
removed for cause as conservator or guardian or trustee or has
resigned as conservator or guardian or trustee in a specific case,
the circumstances causing that removal or resignation, and the case
names, court locations, and case numbers.
   (7) The case names, court locations, and case numbers of all
conservatorship, guardianship, or trust cases which are closed for
which the private professional conservator, private professional
guardian, or private professional trustee served as the conservator,
guardian, or trustee.
   (b) Upon filing of a petition for appointment, a private
professional conservator, private professional guardian, and private
professional trustee shall state that he or she is a private
professional conservator or private professional guardian or private
professional trustee, and that the information required by this
section is on file with the county clerk.
   (c) The county clerk shall order a background fingerprint check
from the Department of Justice and may request a background
fingerprint check from the Federal Bureau of Investigation on each
private professional conservator, private professional guardian, or
private professional trustee.  The background check shall include a
record of all arrests resulting in conviction and all arrests for
which final disposition is pending.  The Department of Justice shall
retain these fingerprints in its files and shall provide any
subsequent arrest information to the county clerk pursuant to Section
11105.2 of the Penal Code until notified by the county clerk that
the person is no longer serving in the capacity of a private
professional conservator , private professional guardian, or private
professional trustee.  The superior court shall review the background
fingerprint check prior to the appointment of a private professional
conservator , private professional guardian, or private professional
trustee.  The court shall review annual updates to the criminal
background check on persons currently serving in the capacity of a
private professional conservator , private professional guardian, or
private professional trustee under the court's jurisdiction.  The
background fingerprint check may be dispensed with by the court if
the petitioner was appointed as a private professional conservator ,
private professional guardian, or private professional trustee, or
served in the capacity of a private professional conservator ,
private professional guardian, or private professional trustee,
during the previous year and a background fingerprint check was
previously made.
   (d) The information required by this section shall be made
available to the court for any purpose, including the determination
of the appropriateness of appointing or continuing the appointment
of, or removing, the conservator or guardian or trustee, but shall
otherwise be kept confidential.
   (e) This section applies to all private professional conservators,
private professional guardians, and private professional trustees
regardless of the date of appointment.
  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
